Changing the name of a nonprofit organization with the IRS is a crucial step that ensures your organization's legal identity is consistent across all official records. While it might seem daunting, breaking it down into manageable steps makes the process clear. Let's dive in!
Ready to give your nonprofit a fresh identity? Let's navigate the IRS name change process together, ensuring a smooth transition for your vital work!
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| How To Change The Name Of A Nonprofit Organization With The Irs |
Step 1: Secure Your New Name at the State Level (The Crucial First Move!)
Before you even think about contacting the IRS, your nonprofit's name change must first be formalized at the state level where your organization is incorporated. This is a non-negotiable prerequisite, as the IRS relies on your state's official records.
Sub-heading: Why State Approval Comes First
It's all about legal recognition. Your nonprofit's legal existence and identity are established by the state. The IRS, in essence, simply recognizes the legal entity that the state has created or amended. Therefore, any change to your organization's core identity, like its name, must originate with the incorporating state.
Sub-heading: What to Do at the State Level
- Review Your State's Requirements: Every state has its own procedures and forms for amending Articles of Incorporation. This typically involves filing an "Amendment to Articles of Incorporation" or a similar document.
- Action: Visit your state's Secretary of State or equivalent business filing agency website. Search for "nonprofit name change" or "amendment to articles of incorporation."
- Board Approval is Essential: Your nonprofit's board of directors must formally approve the name change. This should be documented in the board meeting minutes, demonstrating due diligence and proper governance.
- Tip: Ensure your minutes clearly state the old name, the new name, and the effective date of the change.
- Prepare and File the Amendment:
- Gather Information: You'll typically need your organization's old name, proposed new name, Employer Identification Number (EIN), and possibly your entity number with the state.
- Draft the Amendment: Fill out the required state form accurately. Some states may require a copy of the board resolution.
- Submit and Pay Fees: File the amendment with the state and pay any associated filing fees. Be prepared for these fees, as they vary by state.
- Obtain Proof of Filing: Once the state approves your name change, they will provide you with a certified copy of the amended Articles of Incorporation or an official filing receipt. This document is vital for your IRS notification.
Step 2: Notifying the IRS – The Two Primary Methods
Once your state name change is complete, it's time to inform the Internal Revenue Service. There are two main ways to do this, depending on your organization's annual filing requirements.
Tip: Absorb, don’t just glance.
Sub-heading: Method A: Reporting on Your Annual Information Return (Form 990 Series)
For most nonprofits, the simplest and most common way to inform the IRS of a name change is when you file your next annual information return.
- Identify the Correct Form: This will be your organization's annual return, typically:
- Form 990, Return of Organization Exempt From Income Tax
- Form 990-EZ, Short Form Return of Organization Exempt From Income Tax
- Form 990-PF, Return of Private Foundation or Section 4947(a)(1) Nonexempt Charitable Trust Treated as a Private Foundation
- Note: If your organization files Form 990-N (the e-Postcard) because your gross receipts are normally $50,000 or less, you cannot use this method. Proceed to Method B.
- Check the "Name Change" Box: On the first page of your Form 990 or 990-EZ, look for a checkbox indicating a "Name Change." It's usually prominently located in the heading or identifying information section. Be sure to check this box.
- Enter Your New Name: Clearly enter your organization's new legal name in the appropriate field on the form.
- Attach Supporting Documentation: This is critical. You must include a copy of the state-certified amendment to your Articles of Incorporation (or equivalent document) with your return. Failure to do so could delay the processing of your name change.
- File the Return: Submit your Form 990 series return as you normally would, including the attached documentation.
Sub-heading: Method B: Reporting by Letter or Fax (For 990-N Filers or for an Affirmation Letter)
If your organization files Form 990-N, or if you need an official affirmation letter from the IRS acknowledging your name change, you'll need to send a direct notification.
- Draft a Formal Letter: Your letter to the IRS must be professional and include specific information:
- Your Organization's Full Prior Name: Clearly state the name before the change.
- Your Organization's Full New Name: Clearly state the new legal name.
- Employer Identification Number (EIN): Your organization's unique nine-digit tax identification number.
- Authorized Signature: The letter must be signed by an authorized officer or trustee of your organization (e.g., President, Secretary, Treasurer).
- Capacity of Signer: The signer must clearly state their title and capacity (e.g., "Jane Doe, President").
- Request for Affirmation Letter (Optional but Recommended): If you desire a formal letter from the IRS confirming the name change and reaffirming your tax-exempt status under the new name, explicitly request it in your letter. This can be very useful for grant applications, banking, and other official dealings.
- Attach Supporting Documentation: Just like with the Form 990 method, you must attach a copy of the state-certified amendment to your Articles of Incorporation (or equivalent document).
- Send to the Correct IRS Address or Fax Number:
- Mail: Internal Revenue Service Exempt Organizations Determinations Room 6403 P.O. Box 2508 Cincinnati, OH 45201
- Fax: 855-204-6184
- Important: The IRS does not accept name change requests by phone.
Step 3: Beyond the IRS – Other Essential Notifications
Changing your nonprofit's name with the IRS is a major milestone, but it's just one piece of the puzzle. To ensure a truly seamless transition, you'll need to update your name with a variety of other entities.
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Sub-heading: Keeping Your Records Consistent
- Banks and Financial Institutions: This is paramount. Notify your bank(s) immediately and provide them with the necessary documentation (certified Articles of Amendment, IRS affirmation letter if you have it). You'll likely need to update checking accounts, credit cards, and investment accounts.
- Grantors and Donors: Communicate the name change to all current and prospective grantors, major donors, and fundraising platforms. Clarity and transparency are key to maintaining trust and avoiding confusion.
- Consider: A formal announcement, an update on your website, and direct communication to key stakeholders.
- State Charities Bureaus/Regulatory Agencies: Many states require separate registration for charitable solicitations. You'll need to update your name with these agencies as well.
- Local Government Agencies: If your nonprofit interacts with local governments for permits, licenses, or funding, update your name with them.
- Vendors and Service Providers: Update your name with any organizations you pay for services (e.g., utility companies, insurance providers, software vendors, payroll services).
- Website, Marketing, and Communications: Update your website, social media profiles, letterhead, brochures, email signatures, and all other branding materials. This ensures a unified and professional image.
- Dun & Bradstreet (if applicable): If your organization has a DUNS number (now often replaced by the Unique Entity Identifier - UEI, through SAM.gov), you'll need to update your information there. Many federal grants require this.
- Contracts and Legal Agreements: Review all existing contracts, leases, and legal agreements. While a name change typically doesn't invalidate existing contracts, it's wise to inform all parties and, if necessary, amend agreements to reflect the new name. Consult with legal counsel for complex situations.
Step 4: Confirmation and Ongoing Due Diligence
After you've sent out all notifications, it's a good practice to follow up and ensure your name has been updated in all relevant systems.
Sub-heading: Verifying the Change
- Check Your IRS Online Records: While the IRS doesn't always show immediate updates, you can periodically check their Tax Exempt Organization Search tool to see if your new name appears after some time.
- IRS Affirmation Letter: If you requested an affirmation letter, keep a close eye on your mail. This letter is your official proof from the IRS of the name change.
- Regular Checks: Make it a habit to periodically review your records with various agencies to ensure consistency.
Changing your nonprofit's name is a significant undertaking, but with careful planning and execution of these steps, you can ensure a smooth and compliant transition, allowing your organization to continue its vital mission under its new identity.
10 Related FAQ Questions
How to get a certified copy of my nonprofit's Articles of Incorporation?
You can obtain a certified copy of your nonprofit's Articles of Incorporation (or the amendment) by contacting your state's Secretary of State office or equivalent business filing agency. There is usually a small fee for this service.
Tip: Revisit challenging parts.
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How to determine if my nonprofit needs a new EIN after a name change?
Generally, a nonprofit organization does NOT need a new EIN solely due to a name change. Your EIN identifies your organization as a tax entity, regardless of its name. You would typically only need a new EIN if your organization changes its legal structure (e.g., from an unincorporated association to a corporation) or if you are forming a completely new entity.
How to report a "doing business as" (DBA) name to the IRS?
A "doing business as" (DBA) or trade name is different from a legal name change. If your nonprofit uses a DBA, you typically report it on your Form 990 series return (usually in Column C at the top of page 1), alongside your legal name. You do not need to send a separate letter to the IRS for a DBA.
How to check if the IRS has processed my nonprofit's name change?
While there isn't a direct "name change status tracker," if you requested an affirmation letter, receiving it confirms the change. Otherwise, you can check the IRS's Tax Exempt Organization Search tool periodically (though updates may not be immediate) or call the IRS Exempt Organizations Customer Account Services line (877-829-5500) for general inquiries.
QuickTip: Scan for summary-style sentences.
How to ensure my name change doesn't affect my nonprofit's tax-exempt status?
As long as the name change is purely administrative and does not involve any changes to your organization's purpose, activities, or structure, it should not affect your tax-exempt status. Always ensure you follow the correct state and IRS procedures for reporting the change.
How to update my nonprofit's name with my state's Attorney General's office?
Many states have a separate charities bureau or Attorney General's office that regulates charitable solicitations. You will need to check your specific state's requirements to determine if and how you need to update your name with them. This often involves filing an amendment to your charitable registration.
How to inform donors and the public about my nonprofit's new name?
Communicate proactively! Update your website, social media, and all marketing materials. Send out a press release, an email announcement to your mailing list, and consider a formal letter to major donors and partners explaining the reason for the change and reaffirming your mission.
How to handle existing grants and contracts after a name change?
For existing grants, inform the grantor in writing of your name change, providing them with a copy of your state amendment and, if available, your IRS affirmation letter. For contracts, while the name change typically doesn't invalidate them, it's best practice to formally notify all parties and, for significant contracts, consider amending them to reflect the new name. Legal counsel can advise on complex situations.
How to update my nonprofit's bank accounts with the new name?
Contact your bank's business or nonprofit services department. They will likely require a certified copy of your amended Articles of Incorporation and potentially your IRS affirmation letter. Be prepared to update signature cards and potentially open new accounts if the bank's policy requires it.
How to get an IRS affirmation letter for my nonprofit's name change?
To get an IRS affirmation letter, you must specifically request it in the letter or fax you send to the IRS (Method B, as described above), along with your old name, new name, EIN, and supporting documentation. The IRS does not automatically issue these letters for name changes reported on Form 990.
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